BYD ELECTRONIC (00285) dropped over 4%. As of press time, the stock fell 4.16% to HK$37.74, with trading volume reaching HK$776 million.
Bank of America Securities released a research report indicating that starting from the second half of this year, BYD ELECTRONIC faces intense competition from peer Lens Technology in iPhone casing and smartphone assembly businesses, which may drag down already weak consumer electronics sales.
The firm expects that with support from rapid ADAS penetration at parent company BYD Company, BYD ELECTRONIC's automotive business revenue is projected to achieve a compound annual growth rate of 36% from 2024 to 2027, partially offsetting the negative impact. Meanwhile, the firm has lowered BYD ELECTRONIC's earnings forecasts for 2025 to 2027 by 1% to 11% to reflect risks in the smartphone business.